2026-04 - RFO - Disadvantaged Communities Green Tariff (DAC-GT) Solicitation

REQUEST FOR OFFERS

FOR

DISADVANTAGED COMMUNITIES

GREEN TARIFF (DAC-GT)

Issue Date: August 5, 2026

Proposal Submission Deadline: October 14, 2026, 5:00 PM PT

Orange County Power Authority

15310 Barranca Parkway, Suite 250

Irvine, CA 92618

Table of Contents

1. Request for Offer Overview

On June 21, 2018, the California Public Utilities Commission (CPUC) approved Decision (D.)18-06-027 Alternate Decision Adopting Alternatives to Promote Solar Distributed Generation in Disadvantaged Communities, which adopted new programs, such as the Disadvantaged Communities Green Tariff (DAC-GT) program, to promote renewable generation among residential customers in disadvantaged communities (DAC), as directed by Assembly Bill (AB) 327 (Perea), Stats. 2013, ch. 611.

Pursuant to D.18-06-027, Community Choice Aggregators (CCAs) may develop and implement their own DAC-GT programs. On May 30, 2024, the CPUC issued D.24-05-065, which modified the DAC-GT program, including increasing program capacity and discontinuing future Community Solar Green Tariff solicitations.

On February 6, 2026, the CPUC issued Resolution E-5435, which approved with clarifications Orange County Power Authority’s Advice Letter (AL) 13-E/E-A to create a DAC-GT program. OCPA is authorized to procure 0.53 MW for its DAC-GT program pursuant to Resolution E-5435. This is OCPA's first solicitation under the DAC-GT program. Through this RFO, OCPA is seeking 0.53 MW of new, in-front-of-the-meter renewable energy resources located within five miles from eligible DAC census tracts.

Any Power Purchase Agreements (PPA) resulting from this RFO will be subject to OCPA Board of Directors and CPUC approval. For projects that receive Board approval and sign a PPA, OCPA will submit the executed PPA to the CPUC for approval within 180 days of the Proposer's receipt of shortlist notification.

Program Objectives

The DAC-GT program is designed to:

• Increase local, new-build, small-scale renewable energy projects in disadvantaged communities

• Provide 100% renewable energy with a 20% monthly bill discount to low-income customers

• Support local workforce development and economic benefits

• Promote environmental stewardship and multi-benefit renewable energy

2. Introduction and CCA Background

About Orange County Power Authority

OCPA is a joint powers authority founded by the cities of Irvine, Buena Park, Fullerton, and Huntington Beach on November 20, 2020. On March 9, 2020, the Commission certified OCPA as a CCA and OCPA began serving customer load in Southern California Edison’s (SCE’s) service area in April 2022. On November 24, 2024, the Commission approved the addition of the city of Fountain Valley.

DAC-GT Program Capacity and History

Metric	Value
Total DAC-GT Allocation	0.53 MW
Previously Procured	0.00 MW
Available for This RFO	0.53 MW
Number of Prior RFOs	0

3. RFO Timeline and Important Dates

IMPORTANT: Orange County Power Authority reserves the right to change the schedule of these events at any time and for any reason.

RFO Milestone	Date
RFO Launch and Q&A Opens	August 5, 2026
Proposer Webinar	August 21, 2026, 10:00 AM PT
First Q&A Submission Deadline	August 28, 2026, 5:00 PM PT
First Q&A Responses Posted	September 5, 2026
RFO SUBMISSION DEADLINE	October 14, 2026, 5:00 PM PT
Follow-up with Proposers (as necessary)	November 4, 2026
Shortlist Notification	February 3, 2027
PPA Negotiations and OCPA Board Approval	November 2026 – May 2027
Submit Executed PPAs to CPUC	July 26, 2027

4. Project Eligibility Requirements

All proposals must meet the following eligibility criteria. Failure to meet these requirements may result in the proposal being rejected.

4.1 Geographic Requirements

Utility Service Territory

The project must be physically located in and connected electrically to a circuit, load, or substation within Southern California Edison's service territory.

Proximity to Disadvantaged Communities

The project must be located within five miles of an eligible Disadvantaged Community (DAC) as defined by:

• Census tracts scoring at or above the 75th percentile (top 25% statewide) in CalEnviroScreen 4.0. Census tracts scoring at or above the 75th percentile in the Final CalEnviroScreen 5.0 will also qualify. OR

• Census tracts in the highest 5% of CalEnviroScreen's pollution burden (even without overall score due to unreliable socioeconomic/health data), OR

• California Indian Country as defined in 18 U.S.C. § 1151 (excluding privately held in-holdings)

DAC Verification Tools:

• CalEPA CalEnviroScreen Map

4.2 Technology Requirements

Requirement	Specification
Technology Type	Eligible technologies include: ☐ Solar PV only ☐ Solar PV + Battery Storage
Project Size	Minimum: 500 kW (0.50 MW) AC Maximum: 1,000 kW (1 MW) AC OCPA may consider a project up to 1 MW per Resolution E-5130, which states that “CCAs may solicit above their allocated MW capacity by rounding up to the next whole number of MWs.” However, OCPA will place preference on projects between 0.5 - 0.53 MW (OCPA’s allocated capacity).
Battery Storage (if applicable)	Battery storage configurations (if applicable): ☐ Hybrid (single CAISO meter) - PREFERRED ☐ Co-located (two CAISO meters) - Acceptable Minimum duration: 4 hours Battery capacity must be less than or equal to Solar PV capacity
Configuration	In-front-of-the-meter ONLY (behind-the-meter NOT eligible)
RPS Eligibility	Must be California Energy Commission (CEC) certified as an Eligible Renewable Energy Resource OR must receive CEC certification prior to energy delivery commencement
Development Status	New-build projects only (existing projects NOT eligible)

4.3 Development and Interconnection Requirements

Interconnection Status

Interconnection application with SCE is not required at the time of submission; however, Proposers must provide an interconnection plan with a timeline, key milestones, and a cost and risk assessment demonstrating a credible path to interconnection.

Site Control

Proposer must demonstrate site control via:

• Ownership (deed), OR

• Executed lease (term ≥ PPA term), OR

• Option to lease or purchase

Commercial Operation Date (COD)

Project must achieve Commercial Operation Date no later than December 31, 2030.

Deliverability Status

OCPA will evaluate proposals under all deliverability statuses as follows (in order of preference):

• Full Capacity Deliverability Status (FCDS) - PREFERRED

• Partial Capacity Deliverability Status (PCDS) - Acceptable

• Energy Only - Acceptable (no Resource Adequacy value)

4.4 Compliance Requirements

• Project must qualify as DAC-GT pursuant to D.18-06-027, D.18-10-007, Resolution E-4999, and D.24-05-065

• Environmental Attributes/Renewable Energy Credits must be transferred to OCPA via the Western Renewable Energy Generation Information System (WREGIS), or its successor, without any additional costs or conditions to OCPA

5. Pricing and Commercial Terms

5.1 Contract Term

Contract term: 20 years from Initial Date of Delivery. Proposers may offer an alternative 15-year term in their project narrative.

5.2 PPA Pricing Structure

Solar/Renewable Energy Pricing

Pricing Format	Fixed $/MWh, ZERO escalation over entire contract term
Delivery Point	Project PNode (generator node)
Products Included	Energy, Green Attributes/RECs, Capacity Attributes (if FCDS/PCDS)
Cost Cap	Pricing must be at or below the cost cap, which will be calculated using Confidential Benchmark Value Reference Price (CBVRP). The CBVRP will be independently determined by a third-party reviewing representative, pursuant to Resolution E-5367.

Tax Credit Treatment

OCPA has not yet selected a tax credit approach. Proposers may offer either of the structures below. OCPA will select the preferred approach prior to PPA execution. OCPA acknowledges that, under current market conditions, some Proposers may not yet have secured safe harbor or finalized tax credit positions at the time of bid submission. Proposers are nonetheless encouraged to submit bids and should clearly disclose any related assumptions, limitations, or uncertainties in their proposals.

• Option 1 — Ratepayer Share: Base pricing assumes 30% ITC. Seller must reduce PPA price if it achieves higher ITC/PTC:

○ ITC reduction: $[X]/MWh per each 1% ITC above 30%

○ PTC reduction: $[Y]/MWh per each $0.0005/kWh above benchmark PTC rate

○ Example: If achieves 50% ITC → reduce price by 20 × $[X]/MWh

• Option 2 — Developer Retains Upside: Proposer discloses ITC/PTC assumptions in financing plan. No explicit price reduction mechanism (seller keeps tax credit bonuses unless negotiated)

Battery Storage Pricing (If Applicable)

If the proposed project includes battery storage, Proposers may price under either of the following structures:

• Option 1 — Separate Battery Pricing (Preferred): Solar: Fixed $/MWh PLUS Battery: Separate $/kW-month capacity charge for full-toll agreement (OCPA is sole offtaker of all storage attributes including RA)

• Option 2 — Blended Pricing: Single blended $/MWh for entire solar+storage project (battery value implicit in energy/RA pricing)

5.3 Security Requirements

Security Type	Amount
Development Security (Pre-COD)	$50/kW of Guaranteed Contract Capacity
Performance Security (Post-COD)	$50/kW of Installed Capacity
Shortlist Deposit	$3,000
Form	• Cash • Letter of Credit from issuing bank rated A-/A3 minimum (stable outlook)

Following Proposer notification (i.e., shortlist selection), in order to continue with the process, selected Proposers will be required to sign OCPA’s standard Exclusivity Agreement attached to the RFO Release documents as “OCPA Exclusivity Agreement” and to submit a cash deposit of $3,000 (Shortlist Deposit). The Shortlist Deposit is intended to secure the obligations of any shortlisted Proposer(s) during the negotiating period and to ensure that each offer has been carefully considered.

5.4 Performance Requirements

Guaranteed Energy Production: The PPA will include a performance guarantee with respect to expected annual energy production measured over a two-year performance measurement period. The guarantee will be no less than 160% in the 2-year performance measurement period. The Seller will be responsible for paying damages for any shortfall in production below the performance guarantee based on the cost to OCPA of securing replacement renewable energy during the performance measurement period.

5.5 Scheduling Coordinator

Proposers may propose Seller-SC arrangements in their project narrative for OCPA’s consideration.

6. Workforce Development Requirements

These requirements are MANDATORY for all projects. Failure to comply may result in disqualification.

6.1 Prevailing Wage (Mandatory)

• All employees hired by the project developer, contractors, and ALL TIERS of subcontractors performing construction work must be paid prevailing wages per California law

• Exception: Execution of a Project Labor Agreement (PLA) satisfies this requirement

6.2 Targeted Hire Requirements

Orange County Power Authority strongly encourages workforce practices that benefit local communities. The following qualitative goals apply to all projects:

• Employ workers from OCPA’s service territories (Irvine, Fullerton, Buena Park and Fountain Valley)

• Support local apprentices from CA-approved apprenticeship programs

• Use properly licensed contractors and CA-certified electricians

• Display prevailing wage posters at jobsite

6.3 Project Labor Agreements (Highest Preference)

Projects with executed or committed PLAs receive HIGHEST workforce development scores:

• Rooftop or Parking Canopy Solar: Community Benefit Agreement or PLA with local International Brotherhood of Electrical Workers (IBEW) chapter

• Ground-Mount Solar: Five-trade Community Benefit Agreement or PLA led by local IBEW chapter

7. Evaluation Criteria

Projects will be evaluated using a combination of quantitative (economic value) and qualitative (non-price factors) criteria. Both categories play a major role in project selection.

7.1 Quantitative Evaluation (Economic Value)

OCPA will evaluate each project’s economic value based on its expected market performance at the applicable project PNode. Using the developer-provided 8,760-hour generation profile, OCPA will dispatch each project against simulated PNode prices over the proposed 15-year or 20-year contract term in order to estimate expected energy value and, where applicable, capacity value. The price simulation will reflect anticipated changes in regional market fundamentals, including congestion, solar penetration, storage deployment, and other relevant system conditions. Projects with FCDS or PCDS will receive Resource Adequacy value consistent with their deliverability and qualifying capacity attributes, while Energy Only projects will receive no Resource Adequacy value. OCPA will use this analysis, together with the proposed contract price, to determine the project’s overall economic value.

• Hourly generation profile (8,760 hours) provided by developer

• Dispatched against simulated PNode prices over 20-year or 15-year contract term

• Model accounts for future market changes (congestion, solar growth, storage deployment, regional fundamentals)

• Resource Adequacy value included for FCDS/PCDS projects; zero for Energy Only

7.2 Qualitative Evaluation Criteria

Projects will be scored on a 100-point scale. The criteria and maximum point values are set forth below.

Criterion	Max Points	Key Evaluation Factors
Value – price, energy, attributes, capacity	40	• Price competitiveness relative to CPUC cost cap • Energy production value dispatched against forward PNode prices over contract length term • Green Attributes/RECs • Capacity (RA) value for FCDS/PCDS projects • Highest Priority: projects sized between 0.5 MW AC and 0.53 MW AC.
Project Viability	25	• Interconnection progress and deliverability status • Obtained or in progress of obtaining interconnection fast-track approval • Site control (ownership > lease > option) • Permitting and zoning status • Construction and financing readiness • Realistic COD by December 31, 2030
Project Team Experience	10	• Track record developing comparable solar projects • Completed projects of similar scope and scale • Financial stability of developer and guarantor • California and CCA-specific experience
Project Location – within 5 miles of a SCE DAC Census Tract	10	• Highest priority: project sited within (preferred) or within 5 miles (also acceptable) of a Disadvantaged Community census tract located in OCPA’s service territories (City of Irvine, City of Fullerton, City of Buena Park or City of Fountain Valley) • Top 5% CalEnviroScreen tracts receive additional consideration • Proximity to multiple DAC census tracts
Workforce: Union Labor and Project Labor Agreement	5	• Executed or committed PLA with local IBEW chapter • Demonstrated use of union-affiliated labor for construction • Apprenticeship partnerships with CA-approved programs • Local hiring from workforce in OCPA service territories
Community Benefits Agreement	5	• Tangible economic benefits to DAC residents • Community outreach and engagement plan • Local partnerships and co-investment commitments • Grant eligibility (CSD, TCC, or similar)
Environmental Stewardship	5	• Multi-benefit project design (e.g., solar + habitat restoration) • Sited in renewable development zones • Minimized environmental conflict and mitigation requirements • Air quality and pollution reduction co-benefits
TOTAL	100

8. Submission Requirements

All proposals must include the following documents. Incomplete submissions may be rejected.

8.1 Required Documents

1. Completed Offer Form (Excel Template)

Must include:

○ Participant and Project Information

○ 8,760 hourly generation profile (full year)

○ 12x24 hourly generation profile (if applicable with battery storage)

○ Pricing ($/MWh for energy; $/kW-month for battery if applicable)

○ Qualitative assessment questionnaire

○ Development risk assessment

2. Project Narrative (PDF)

Must include the following sections IN ORDER:

A. Project Summary: 1-2 paragraph overview (location, size, key details)

B. Project Details Table: Name, location (city/county), census tract, capacity, COD, pricing

C. Site Description: Current land use, interconnection proximity, new facilities needed, detailed site map

D. Project Risks: Interconnection, site control, permitting, environmental, financing risks

E. Community Experience: Benefits to community, outreach plan, workforce development approach

F. Developer Experience: Track record, similar completed projects

G. Alternative Offers (Optional): Different CODs, pricing schemes, SC arrangements

3. Supporting Documents

The following supporting documents are required with submission:

○ Financing Plan (ITC/PTC assumptions, capital structure)

○ Two Years of Audited Financial Statements (Proposer or guarantor)

○ Organizational Chart (ownership structure)

○ Latest Interconnection Document (Phase I/II study, Fast Track, GIA)

○ GANTT Chart Project Timeline (interconnection, procurement, permitting, construction milestones)

○ Permitting/Land Use/Zoning Documentation

○ To-Scale Site Map (with APNs, boundaries, layout)

○ Single Line Diagram

○ Redlined Term Sheet (Word document with proposed changes)

○ ArcGIS or Google Earth Geospatial File (.zip shapefile or .kml)

○ Executed NDA (OCPA’s standard form)

○ Campaign Contribution Disclosure Form (CA Form 461)

8.2 Submission Process

Note regarding the submittal of RFP responses: only electronic submittals will be accepted; such submittals must be received by OCPA no later than 5:00 P.M. PPT on Friday, October 14, 2026. All responses should be submitted to www.bidnetdirect.com, which is a free platform to applicants. If bidnetdirect.com creates a hardship, please email submissions in PDF format to powerresources@ocpower.org and must include the following subject line: "2026 OCPA DAC-GT RFO - [PROJECT NAME]"

CRITICAL: It is the sole responsibility of the Proposer to ensure submission is received before the deadline. Late submissions will NOT be accepted.

8.3 Compliance Review

After the submission deadline, all proposals will be reviewed for compliance. At OCPA's discretion, Proposers may be notified of deficiencies and given five business days to submit compliant materials or risk rejection.

9. Post-Submission Process

9.1 Shortlist Selection

Shortlisted Proposers will be notified on February 3, 2027. Shortlisted Proposers must:

1. Sign OCPA’s Exclusivity Agreement

2. Post Shortlist Deposit of $3,000 within 7 business days

3. Enter good-faith PPA negotiations

9.2 PPA Negotiations

Bilateral negotiations will occur between November 2026 and May 2027. OCPA will provide draft PPA to shortlisted Proposers after exclusivity execution.

9.3 Board Approval

Final PPAs require OCPA Board of Directors approval at a duly noticed public meeting. Last opportunity for Board approval: May 2027.

9.4 CPUC Approval

OCPA will submit executed PPAs to the CPUC for approval within 180 days of shortlist notification (by February 3, 2027). PPAs become effective only upon CPUC approval (typically 6-12 months).

10. Communications and Q&A

10.1 RFO Website

All RFO documents, announcements, Q&As, and updates available at: https://www.bidnetdirect.com/california/orangecountypowerauthority

10.2 Proposer Webinar

OCPA will host an informational webinar on August 21, 2026, 10:00 AM PT. The registration link will be posted on the RFO website. Attendance is strongly encouraged.

10.3 Q&A Process

Respondents may submit questions to OCPA regarding this RFP process and associated materials no later than 5:00 P.M. PPT on August 28, 2026. All questions should be submitted electronically to www.bidnetdirect.com. Bidnetdirect.com will be the official notification posting place of all Requests for Interest, Proposals, Quotes and Addenda.

All questions will be posted anonymously on the RFO website. OCPA reserves the right to group similar questions.

10.4 Communication Restrictions

IMPORTANT: Proposers are PROHIBITED from contacting OCPA personnel, Board members, or alternates outside the formal Q&A process. Violation may result in disqualification.

11. Reservation of Rights

This RFO is a solicitation for offers only and does not constitute an offer to enter into a contract. Orange County Power Authority reserves the following rights:

• Accept or reject any or all proposals, in whole or in part

• Modify, suspend, or terminate the RFO at any time without liability

• Waive minor errors, omissions, or non-conformities

• Request additional information or clarifications

• Negotiate with any or all Proposers

• Amend the RFO via written addendum

• Cancel negotiations at any time prior to agreement execution

• Conduct bilateral negotiations outside RFO terms

OCPA shall not be liable to any Proposer for any acts, omissions, or costs arising from this RFO. All proposal preparation costs are the sole responsibility of the Proposer.

No Guarantee of Agreement

OCPA shall not be bound by any proposal terms until an agreement is executed by OCPA, approved by the Board of Directors, approved by the CPUC, and all conditions precedent are satisfied or waived.

12. Confidentiality and Public Records

12.1 California Public Records Act (CPRA)

All proposals become the property of OCPA and are subject to the California Public Records Act (Cal. Government Code § 7920.000 et seq.). Documents may be disclosed unless exempt under the CPRA.

12.2 Designating Confidential Information

To designate information as confidential:

A. Clearly stamp and identify the SPECIFIC portion as "Confidential"

B. Provide citation to the CPRA exemption supporting confidentiality

C. DO NOT over-designate - blanket "Confidential" stamps on the entire proposal may be disregarded

WARNING: Marking entire pages or the entire proposal as confidential without justification may result in the entire proposal being treated as public record.

12.3 Disclosure Requirements

If required by law or CPUC order, OCPA may release confidential information. OCPA will notify the Proposer of required disclosure, allowing the Proposer to seek court protection at the Proposer's expense.

12.4 Indemnification

By submitting a proposal, Proposer agrees to indemnify and hold harmless OCPA, its directors, officers, employees, and agents from any claims, liability, or damages arising from OCPA's refusal to disclose confidential information.

Appendix A – Offer Requirements Summary

Quick Reference Summary

Requirement	Specification
Technology	Solar PV; Solar PV + Battery Storage
Size Range	0.50 MW – 0.53 MW AC
Location	SCE service territory, within 5 miles of DAC
Interconnection	Interconnection plan with timeline, milestones, and cost/risk assessment required
COD	December 31, 2030
Term	20 years (preferred), 15 years
Pricing	Fixed $/MWh, zero escalation, at PNode
Security	$50/kW Development Security $50/kW Performance Security
Prevailing Wage	MANDATORY (all tiers)

Appendix B – DAC Locational Requirements

CalEnviroScreen DAC Definition

The CPUC defines an eligible DAC as census tracts meeting ANY of the following:

A. CalEnviroScreen Score: Score at or above the 75th percentile (top 25% statewide) in CalEnviroScreen 4.0

B. Pollution Burden: Census tracts in the highest 5% of CalEnviroScreen's pollution burden (even without overall score due to incomplete socioeconomic/health data)

C. Tribal Lands: California Indian Country as defined in 18 U.S.C. § 1151 (excluding privately-held in-holdings)

Verification Tools

• CalEPA CalEnviroScreen Map: https://oehha.ca.gov/calenviroscreen

• Download DAC List (Excel): Available at CalEPA website

CalEPA has created an online map that displays the CalEnviroScreen results. There are multiple ways to identify DACs:

1. Via Data List (Spreadsheet). Visit the CalEPA DAC website, download the List of Disadvantaged Communities Excel file, and filter the data set; or

2. Search by Address. On the CalEnviroScreen map, in the “Find address or place” field, input the address and determine the color coding alongside the map legend. DAC-GT projects can be sited in any DAC in SCE service territory.

5-Mile Proximity Requirement

Projects may be located IN or WITHIN 5 MILES of an eligible DAC census tract. The 5-mile distance is measured from the project boundary to the nearest DAC census tract boundary.

Important Notes

• Projects must be physically located in Southern California Edison’s service territory

• Interconnection must be to a circuit, load, or substation within Southern California Edison’s service territory

• Proposers are responsible for verifying DAC status before submission

• OCPA reserves the right to verify DAC eligibility using official CPUC sources

— END OF REQUEST FOR OFFERS —

RFO Website: https://www.ocpower.org/resources/rfq-rfp-solicitations/